As the price of Bitcoin continues to hit new highs in 2024, global attention is gradually focused. For investors in the cryptocurrency market represented by Bitcoin, it is an investment return feast. A return rate of 10 times a year is enough to kill traditional investments in 2023. Subject. Onlookers began to gather this bitcoin niche market, search for bitcoin-related information through Baidu Twitter, and mentally wonder whether it is appropriate to buy bitcoin now.

I. Peripheral admission

Last year, when the price of Bitcoin was hesitant to wait and see, the world's richest man Tesla CEO Musk and Grayscale Fund stepped forward. Gray's unique system settings and continued large-scale purchases of cryptocurrencies such as Bitcoin have inspired many foreign institutions to follow suit. As the richest man in the world, Musk's celebrity effect is self-evident.

Grayscale is one of the investment institutions that investors in the cryptocurrency market pay attention to. It has the role of an investment vane and is also one of the bridges linking cryptocurrency and legal currency. Therefore, it is worthy of long-term attention.

Grayscale risk

Grayscale Fund was established in 2013. It is an investment fund based on the market value of the bitcoin price it holds. It operates through compliant funds to serve institutional investors and high net worth qualified investors. It is also the only exposure in the U.S. pension plan that can buy bitcoin. Their profit points mainly come from the following two points: one is to obtain high returns through the price difference after the price of the digital currency market rises; second, they can earn huge handling fees and commissions.

II. Fixed investment and mining

Bitcoin fixed investment and mining is the most accessible place to make money in the cryptocurrency market, and it is also the easiest way to open it successfully.

Advantages of fixed investment: First, the risk is low. Fixed investment can obtain more status bargaining chips and lower the average price. The second is a stable income and simple operation. Disadvantages of fixed investment: The timing of lightening the shipment is not easy to grasp.

Compared with fixed investment, the advantages of buying mining machines for mining are more prominent. The payback cycle of mining is clear. If it encounters a bull market, it will accelerate back to the cycle. The disadvantage is that the amount of mining machines purchased in the early stage is enormous.

1. Introduction to mining

The bitcoins produced after purchasing the mining machine are transferred to your designated wallet every day. It now costs more than 300,000 yuan to buy a bitcoin, and the price of a first-line mining machine is one-sixth of that. The lifespan of a new mining machine is generally four years, the total payback cycle is one year, and the remaining three years are your free bitcoins.

Simply put, mining is to buy bitcoins at a discount.

2. What is a Bitcoin mining machine?

Bitcoin mining miners are computers that are used to obtain bitcoins. This kind of computer generally has a professional mining chip, using more burning graphics card way of work, power consumption is more extensive.

Users can earn corresponding bitcoins by downloading mining machine software and communicating with remote servers. This is one of the ways to obtain bitcoins so far. Digital currencies started in 2013 include hundreds of digital currencies such as Bitcoin and Litecoin, but the mainstream is Bitcoin, Wright, and Ethereum.

2.1 Hardware used for mining

The mining machines in the Bitcoin ecosystem are dominated by application-specific integrated circuits (ASICs). For most other cryptocurrencies, graphics processing units (GPUs) and field-programmable gate arrays (FPGAs) are the primary forms of mining machines. Many cryptocurrencies use the same hash algorithm (SHA256) like Bitcoin, and they are also compatible with Bitcoin's ASIC miners.

2.2 Factors affecting mining revenue

The factors are Bitcoin price, computing power, daily single transaction fee, mining machine purchase price, mining machine delivery method, mine installation time and cost, mine custody fee, electricity price, wallet fee, policy, Weather, etc.

III. At the end of the article

Whether in a bull market or a bear market, miners will make money in the Bitcoin market. At present, the Bitcoin mining market is becoming more and more compliant and more suitable for investors to participate. As the labour and material costs of Bitcoin mining investment continue to rise, mining behaviour has evolved from an early single-soldier operation to a professional and large-scale operation. The mining location has also moved from its own backyard to a professional mining farm. Learn More About Why do you need to be conscious of Bitcoin value fluctuation?